China’s Xiaomi Inc. has agreed to purchase close to three percent stake in Kingsoft Corp., a Beijing-based software company, in which the smartphone maker’s CEO Lei Jun is an investor, The Wall Street Journal reported on Sunday.

Xiaomi will acquire 2.98 percent of Kingsoft from Chinese Internet company Tencent Holdings Ltd. for HK$527 million ($68 million). Lei, seen as the main founder of Xiaomi, is also the chairman of Kingsoft, according to the report that cited a stock exchange filing.

Tencent owned 12.6 percent of Kingsoft before the sale, which is expected to close by Jan. 30. The deal will increase Lei’s holdings in Kingsoft to 29.9 percent, via his control of privately held Xiaomi, the newspaper reported.

Xiaomi, which recently released its latest flagship phablet, the Mi Note, to directly compete with Apple Inc.’s iPhone 6, is looking to build an ecosystem of services and both hardware and software products that would make its smartphones more attractive.

The company has raised $1.1 billion at a valuation of $45 billion and is investing in everything from online video content to wearables and smart-home technologies and products.